Eurozone Consumers Slightly Less Pessimistic in May

Euro Area consumer confidence was at -19 in May 2026, up from an over three-year low of -20.6 in April and confirming preliminary estimates. However, it remains firmly in negative territory, with inflationary pressures stemming from the Middle East conflict sustaining expectations of potential rate hikes. In the broader European Union, consumer sentiment also improved to -18.2 from -19.9 the month before, as consumers turned less pessimistic regarding their future household financial situation, major purchases, and the general economic outlook, while their assessment of past financial conditions remained broadly stable.

Euro Area consumer confidence edged up to -19 in May 2026 from an over three-year low of -20.6 in April and came in better than market forecasts of -20.8, according to flash estimates. However, it remains firmly in negative territory, with price pressures from the Middle East war fueling inflation concerns and putting rate hikes on the horizon. In the broader European Union, consumer sentiment also improved to -18.2 from -19.4 the month before. Both indices remain well below their long-term averages and below levels seen before the outbreak of the Middle East conflict.

Euro Area consumer confidence was confirmed at -20.6 in April 2026, the lowest since December 2022, compared to -16.4 in the prior month, according to flash estimates. In the broader European Union, consumer sentiment plunged to -19.4 from -15.4 in March, driven by broad-based weakness across all components, amid heightened global economic uncertainty linked to the ongoing geopolitical tensions. Energy supply disruptions arising from the Middle East conflict are stoking inflationary pressures, which may prompt higher interest rates and place further strain on households. Survey respondents reported worsening finances, softer spending plans, and a pronounced deterioration in economic expectations. Confidence in both the eurozone and the EU remains well below their long-term averages.